Twinkie Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter’s operating profits, by product, and for the company as a whole, were as follows:

Forty percent of the Round Game’s fixed costs could have been avoided if the game had not been produced or sold.

Required
If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as awhole?

Transcribed Image Text:

Sales revenue Variable expenses Contribution margin Fixed expenses Op Square $11,000 4,400 6,600 2,750 3,850 Round $6,600 3,000 3,600 4,200 $ (600) Total $17,600 7,400 10,200 6,950 3,250 erating income